SORSOGON MEDICAL MISSION GROUP

HOSPITALAND HEALTH

SERVICES COOPERATIVE

AUDITED FINANCIAL

STATEMENTS 2015

STATEMENT OF

OPERATIONS(With Comparative Figures for 2014)

2015 2014

REVENUES

Income from Service(Hospital) Operation 132,191,239.49 116,800,557.54

Income from Consumers/Marketing Operations 18,772,683.23 21,048,426.08

Other Income 1,527,481.98 746,886.70

TOTAL REVENUES 152,491,404.70 138,595,870.32

EXPENSES 137,742,912.48 127,573,576.28

NET SURPLUS BEFORE ADJUSTMENT 14,748,492.22 11,022,294.04

PRIOR YEARS ADJUSTMENTS (863,187.88) (44,543.36)

NET SURPLUS FROM OPERATIONS 13,885,304.34

10,977,750.68

Note 15- INCOME/RECEIPTS

This account is broken down as follows: 2015 2014

11.1 Income from Service Operations (Hospital Service Income)Service Income - Room and Board 23,639,027.25 26,304,753.70 Service Income - OPD 1,927,851.72 2,077,276.20 Service Income - Laboratory 29,041,761.68 24,534,188.06 Service Income - Laboratory - PMDT 3,896,330.00 2,006,315.20 Service Income - X-Ray 4,517,825.49 4,015,184.85 Service Income - Ultra Sound 4,787,658.50 3,970,651.00 Service Income - CT Scan 7,031,651.62 4,394,817.00 Service Income - Carotid Duplex Scan 7,000.00 - Service Income - ECG 1,272,162.90 1,154,500.70 Service Income - Delivery Room 1,282,442.50 786,527.50 Service Income - Operating Room 5,646,642.51 5,488,993.00 Service Income - Endoscopy 584,918.50 -Service Income - Emergency Room 2,474,798.66 2,225,582.00 Service Income - Nebulization 1,197,716.75 1,118,499.25

2015 2014Service Income - Suction 56,981.56 33,001.20 Service Income - Oxygen 6,885,073.23 6,514,200.00 Service Income - PT Rehab 969,029.70 807,957.00 Service Income - 2D Echo 1,788,840.39 1,498,260.00 Service Income - Treadmill 103,197.20 59,600.00 Service Income - Hemodialysis 17,177,281.63 17,098,345.21 Service Income - Dental 188,826.92 117,170.00 Service Income - Pulse Oximeter 389,295.00 376,100.00 Service Income - ICU 3,342,850.00 3,054,500.00 Service Income - Ventilator 563,600.00 366,700.00 Service Income - Hearing Test 72,250.00 -Service Income - Defibrillator 2,500.00 - Service Income - Cautery 217,260.00 190,775.00 Service Income - Ambulance 418,582.52 327,565.70 Service Income - Dietary 9,043,015.75 3,557,463.46 Service Income - Nursing Service 14,796,559.67 10,320,092.28

Total 143,322,931.65 122,399,018.11 Less: Discounts 11,131,692.16 5,598,460.57 Net Income from Hospital Services 132,191,239.49 116,800,557.54

15.2 Income from Marketing/Consumers Operations 2015 2014

Medicines 67,045,180.94 61,718,445.27

Medical Supplies 1,866,470.43 1,666,900.96

Total 68,911,651.37 63,385,346.23

Less: Sales Return and Discount 833,309.44 695,621.67

NET SALES 68,078,341.93 62,689,724.56

Less: Cost of Sales

Medicines 52,042,712.32 44,264,138.79

Medical Supplies 666,083.83

1,405,723.91

Less: Purchase Discount (3,403,137.45) (4,028,564.22)

Total 49,305,658.70 41,641,298.48

GROSS PROFIT FROM SALES 18,772,683.23 21,048,426.08

15.3 Other Income 2015 2014

Interest on PN Accounts 48,834.94 28,595.89

Interest Income-Bank Deposits (net of tax) 38,687.24 45,295.60

Income from Investment (net of tax) 728,820.58 54,750.00

Membership Fees 329,920.00 34,900.00

Recovery from Bad Debts 51,344.22 315,015.61

Affiliation/Orientation Fee 5,250.00 2,329.60

Donation - -

Rentals - -

Rentals-Doctors' Clinic 324,625.00 266,000.00

OR Cataract - -

Total 1,527,481.98 746,886.70

15.4 TOTAL INCOME FOR THE PERIOD 152,491,404.70 138,595,870.32

87%

12%

1%

Income from Ser-vice (Hospital) OperationsIncome from Consumers/Mar-keting OperationsOther Income

REVENUES

EXPENSES

64%

1%

35% COST OF

SALES/SERVICES FINANCING COST PERSONNEL COST

2014 2015 -

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

14,000,000.00 10,977,750.68

13,885,304.34

COMPARATIVE NET INCOME

COMPARATIVE GRAPHICAL PRESENTATION OF NET INCOME AGAINST BUDGETFor the year ended December 31, 2015

STATEMENT OF FINANCIAL CONDITION

As of December 31, 2015

2015 2014ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 13,617,290.37

9,248,083.20

Receivables and Advances, Net 52,869,909.25 53,348,030.00

Inventories 12,544,830.30 17,402,031.40 Other Current Assets 144,423.37 160,457.27

Total Current Assets 79,176,453.29 80,158,601.87

NON-CURRENT ASSETS

Investment-Non Marketable Equity Securities (LT) 4,249,581.85

4,949,681.85 Property and Equipment, Net 97,997,695.27 91,705,157.55

Other Non-Current Assets 4,764,435.83

238,766.72

Total Non-Current Assets 107,011,712.95 96,893,606.12

TOTAL ASSETS 186,188,166.24

177,052,207.99

LIABILITIES AND EQUITY

LIABILITIES

CURRENT LIABILITIES

Trade, Non-Trade and Other Payables 48,580,732.40 67,526,447.02

Total Current Liabilities 48,580,732.40 67,526,447.02

NON-CURRENT LIABILITIES

Loans Payable-Long Term 23,996,547.89 25,115,123.05

Other Non-Current Liabilities 14,805,920.68

12,759,922.47

Total Non-Current Liabilities 38,802,468.57 37,875,045.52

TOTAL LIABILITIES 87,383,200.97

105,401,492.54

EQUITY

Share Capital 65,252,013.91 51,890,748.89

Statutory & Optional Funds 19,667,647.02 19,759,966.56 13,885,304.34

TOTAL EQUITY 98,804,965.27 71,650,715.45

TOTAL LIABILITIES AND EQUITY 186,188,166.24 177,052,207.99

COMPOSITION OF TOTAL ASSETS (YAMAN O ARI-ARIAN)

COMPOSITION OF TOTAL LIABILITIES (UTANG)

COMPOSITION OF TOTAL EQUITY

ASSETS

47%53%

LIABILITIES + EQUITY

ACCOUNTING EQUATION

2014 2015 172,000,000.00

174,000,000.00

176,000,000.00

178,000,000.00

180,000,000.00

182,000,000.00

184,000,000.00

186,000,000.00

188,000,000.00

177,052,207.99

186,188,166.24

TOTAL ASSETS (YAMAN/ARI-ARIAN)

2014 2015 -

20,000,000.00

40,000,000.00

60,000,000.00

80,000,000.00

100,000,000.00

120,000,000.00

TOTAL LIABILITIES (UTANG)

2014 2015 -

10,000,000.00

20,000,000.00

30,000,000.00

40,000,000.00

50,000,000.00

60,000,000.00

70,000,000.00

80,000,000.00

90,000,000.00

100,000,000.00

TOTAL EQUITY (KAPITAL/YAMAN-UTANG)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.00 1.17

1.41

1.03 0.97 0.95 1.07 1.06

1.35

1.19

1.34

Current Ratio (11 years)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150%

10%20%30%40%50%60%70%80%

63%67%

62%59%

52%56% 58% 60%

57% 60%

53%

Debt Ratio (11 years)

0%

10%

20%

30%

40%

50%

60%

37%33%

38% 41%48%

44% 42% 40% 43% 40%

47%

Equity Ratio (11 years)

STATEMENT OF CASH FLOWS

2015 2014

NET INCOME 13,885,304.34

10,977,750.68 CASH FLOW FROM OPERATING ACTIVITIES

Non-Cash Expenses Depreciation 14,554,368.10 13,789,084.68

Provision for Cooperative Guarantee FundChanges in assets and liabilities

Decrease ( Increase ) in:Receivables and Advances 478,120.75 (12,679,385.29)

Inventories 4,857,201.10

(5,992,550.41)

Other Current Assets 16,033.90 850,053.07

Other Non-Current Assets (4,525,669.11) (76,116.72)Increase ( Decrease ) in:

Trade, Non-Trade and Other Payables (9,502,775.69)

(18,942,990.24)

Non-Current Liabilities 2,045,998.21

3,625,196.42

Interest on Share Capital Payable (5,570,105.16)

(4,736,153.80) Patronage Refund Payable (3,872,833.77) (213,541.49)

Net cash provided by ( used in ) operating activities 12,365,642.67 24,487,327.38

CASH FLOW FROM INVESTING ACTIVITIES 2015 2014

Increase in Long-Term Investments 700,100.00

(1,636,100.00)

Acquisition/disposal/Sale of Property and Equipment (20,846,905.82)

(19,743,604.52)

Net cash provided by ( used in ) investing activities (20,146,805.82)

(21,379,704.52)

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease ( Increase in other Fund and Deposits )

Net Proceeds/Payments from/of bank loans (1,118,575.16) (6,156,545.63)

Net Proceeds from Issuances of Share Capital 13,361,265.02 5,827,173.43

Changes in Statutory and Optional Funds (92,319.55)

(1,548,752.77)

Net Cash Provided by ( used in ) Financing Activities 12,150,370.31

(1,878,124.97)

NET CHANGES IN CASH AND CASH EQUIVALENT 4,369,207.16

1,229,497.89

CASH AND CASH EQUIVALENT BALANCE, January 1 9,248,083.20 8,018,585.31

CASH AND CASH EQUIVALENTS, December 31 13,617,290.37 9,248,083.20

PROFITABILITY VS LIQUIDITY

VENDOR B

VENDOR A

EMPLOYEES

VENDOR B

VENDOR A

EMPLOYEES

ITEMS QTY. Cost Total

APPLES 3 BOXES 900.00 2,700.00

GRAPES 3 BOXES 1,300.00 3,900.00

ORANGE 3 BOXES 600.00 1,800.00

TOTAL DUE 8,400.00

ITEMS QTY. Selling Price Total

APPLES 3 BOXES

1,400.00 4,200.00

GRAPES 3 BOXES

1,800.00 5,400.00

ORANGE 3 BOXES 800.00 2,400.00

TOTAL REVENUE (KITA) 12,000.00 LESS: COST (KABAKLANAN) 8,400.00

INCOME (NET TUBO)

3,600.00

Terms of Payment:

15th 30th

PROFIT??(Tubo??)

NO! (at the point of sale)LIQUID

??(Pera???)

YES!

YES! (at the point of collection during payroll period)

SUPPLIERS

SMMGHHSC

PROFIT??(Tubo??)

YES!! 13 M

LIQUID??(Pera???)

YES! (upon payment of PHILHEALTH,PCSO, HMO’s AND PATIENTS)

NO! (phic package,pcso grantees, with PN’s)

GOALS:

• IMPROVE COLLECTIONS • DECREASE LIABILITIES• INCREASE CAPITAL• INCREASE INCOME• DECREASE EXPENSES

THANKYOU!